Stocks fall off the fiscal cliff

Nov. 07 - Summary of business headlines: The Dow drops 313 points as investors turn their attention from the election to impending tax increases and spending cuts, Apple shares down 20% since high; Nor'easter causes more misery for Sandy victims. Carmen Roberts reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL
A post election sell-off pushes the S&P 500 to its worst decline since June. U.S. stocks dropped two percent, as investors turned their attention from the Presidential election back to Europe's recession and America's looming fiscal cliff of tax increases and spending cuts.
Thomas Lee is a strategist for JP Morgan Chase.
TOM LEE, STRATEGIST, JP MORGAN CHASE & CO. (ENGLISH) SAYING:
"When we think about the fiscal cliff there's a lot at stake, because of the size of the fiscal adjustment and how it would affect the U.S. economy. In theory, the full brunt of it would put us back into recession."
Brian Belski, chief investment strategist at BMO Capital Markets, says President Obama was clear in his victory speech -he wants to work with Republicans to fix the issue.
BRIAN BELSKI, CHIEF INVESTMENT STRATEGIST, BMO CAPITAL MARKETS (ENGLISH) SAYING:
"I think the market is kind of telling you some doubting right now. But again, we'll see over the next few months whether we can see a little bit more aggressiveness with playing in the sandbox together."
Investors are also doubting Apple. The company is struggling to make enough iPhone 5s to meet demand. Shares have lost 20 percent since touching a record high of $705 in September.
More weather troubles in the same area devastated by Hurricane Sandy last week. A Nor'easter brought snow and gusting winds to families and businesses in the Mid-Atlantic struggling to deal with Sandy's destruction.
One of those businesses, Macy's, says Sandy negatively impacted its November sales and it will miss Wall Street's fourth-quarter profit estimates.
Investor concern was amplified as protests over new Greek austerity measures turned violent and the European Commission said the euro zone economy will barely grow next year. That bleak forecast helped push European stocks sharply lower.